WHITE MOUNTAINS INSURANCE GROUP LTDWTM
WHITE MOUNTAINS INSURANCE GROUP LTD Revenue Disclosure
Revenue Recognition
Kudu’s revenues are primarily generated from Participation Contracts, which are generally noncontrolling equity interests in revenue and earnings participation contracts with asset and wealth management firms. Kudu’s Participation Contracts are measured at fair value with the change therein recognized within net realized and unrealized investment gains (losses). Distributions from Kudu’s managers are recognized through investment income when Kudu’s right to receive payment has been established and can be reliably measured, which generally occurs on a quarterly basis in accordance with the terms of the Participation Contracts.
Bamboo’s revenues consist primarily of commission and fee revenues for placement of insurance policies. Commission and fee revenues are measured based on the contractual rates with insurance carriers, net of any amounts expected to be uncollectible and any amounts associated with expected policy cancellations and adjustments, and are recognized when contractual performance obligations have been fulfilled. Bamboo’s primary contractual performance obligations are generally satisfied upon the issuance of an insurance policy. Bamboo’s premiums, commissions and fees receivable consist of insurance premiums and fees receivable from customers and commissions receivable from insurance carriers, net of a provision for amounts estimated to be uncollectible and any amounts associated with expected policy cancellations and adjustments.
Distinguished’s revenues consist primarily of commission and fee revenues related to its placement of insurance policies. Commission revenues are measured based on the contractual rates with its insurance carriers, net of any amounts expected to be uncollectible and any amounts associated with expected policy cancellations and adjustments, and are recognized when contractual performance obligations have been fulfilled. Distinguished also earns fee revenues, primarily related to risk management services provided to certain insureds, which are recognized when contractual performance obligations have been fulfilled. Distinguished’s primary contractual performance obligations are generally satisfied upon the issuance of an insurance policy. Distinguished’s premiums, commissions and fees receivable consist of insurance premiums and fees receivable from insureds and commissions receivable from insurance carriers, net of a provision for amounts estimated to be uncollectible and any amounts associated with expected policy cancellations and adjustments. Premiums receivable are collected on behalf of Distinguished’s insurance carriers. Distinguished’s premiums and commissions payable consist of insurance premiums payable to insurance carriers and commissions payable to sub-agents and brokers.
Other Operations recognizes commissions and fee revenues as well as other revenues when it has satisfied its performance obligations. Enterprise Solutions’s revenues consist primarily of construction revenues from specialty electrical contracting services provided to commercial and institutional customers. Enterprise Solutions’s billings are generally based on contractual terms and may not coincide with its progress in a project. Construction revenues, which are presented within other revenues, are recognized over time using the cost-to-cost percentage of completion input method, based on the ratio of contract costs incurred to date compared to total estimated contract costs. Contract costs incurred to date and expected total contract costs are continuously monitored during the term of the contract. Enterprise Solutions records accounts receivable, which are presented within other assets, for amounts billed to the customer, net of a provision for amounts estimated to be uncollectible. If the recognized revenue is greater than the amount billed to the customer, a contract asset is recorded within other assets. Contract assets also include amounts billed under retainage provisions that cannot be collected until the contract work has been completed and approved. If the amount billed to the customer is greater than the recognized revenue, a contract liability is recorded within other liabilities.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 26, 2024 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.